Amazon confirms acquisition of Souq, marking its move into the Middle East

Amazon today confirmed that it has acquired Souq.com, an e-commerce marketplace serving the Middle East based out of Dubai and already commonly described as “the Amazon of the Middle East.” We had reported last week that the companies had already reached an agreement and that “the ink [was] dry” on a deal that was valued at around $650 million. Amazon today did not disclose the price in a short statement announcing the deal today.

The acquisition marks the company’s first move into serving the Middle East region, which covers some 50 million, giving Amazon an immediate leg up rather than building a new service from the ground up: the company includes both a payments and fulfilment infrastructure, along with a marketplace that already has some 4 million products and works with thousands of merchants to help sell their goods online.

“Amazon and SOUQ.com share the same DNA – we’re both driven by customers, invention, and long-term thinking,” said Russ Grandinetti, Amazon Senior Vice President, International Consumer, in a statement. “SOUQ.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We’re looking forward to both learning from and supporting them with Amazon technology and global resources. And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East.”

Amazon is treating this as a bolt-on acquisition, bringing on management and other teams, along with the existing Souq.com business.

“We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region,” aded SOUQ.com CEO and Co-Founder Ronaldo Mouchawar. “By becoming part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers.”